Global Connections in Pharma Strengthen America's Economy
International companies operating in the United States play an important role in supporting the U.S. pharmaceutical industry through foreign direct investment (FDI).
Foreign direct investment in the United States in 2020 was $177 billion, making it the weakest year for FDIUS over the past decade. The two record-breaking years of FDIUS were recorded in 2015 and 2016, at $484 billion and $480 billion, respectively. While the United States remains an attractive investment location, global competition for foreign investment dollars is increasing as more developing countries position themselves as investment destinations.
Foreign direct investment in the United States (FDIUS) totaled nearly $70 billion in the fourth-quarter of 2020. This is up 75 percent from the previous quarter. Net equity flows more than quadrupled from $11.9 billion in third-quarter 2020 to $53.4 billion in the last quarter. This was the strongest quarter for equity flows in the past two years. Reinvestment of earnings were up 13 percent to $34 billion from the previous quarter.